PocuppyTheHype Foreclosure Quiz

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How much do you know about the U.S foreclosure crisis? Find out here!

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PocuppyTheHype Foreclosure Quiz

  1. 1. !" In 2006,why were Latinos 3.5 times more likely and Blacks 5 times more likely than Whites in New York to receive sub-prime loans?[1] A. “They’re irresponsible with their money.” B. “They always want more than they can afford.” C. Mortgage companies and Banks profit by selling high-interest sub-prime mortgages to Black and Latino communities who have historically been denied equal access to credit. (see back for details) #$%&( If you answered A or B, you believed the hype. If you answered C, you poccupied the hype! POCCUPY People of color confronting the HYPE miseducation and raising consciousness.· Former Chase Vice President described “executives earned a commission seven times higher from subprime loans, ratherthan prime mortgages. So they looked for less savvy borrowers — those with less education, without previous mortgageexperience, or without fluent English — and nudged them toward subprime loans. These less savvy borrowers weredisproportionately blacks and Latinos, he said, and they ended up paying a higher rate so that they were more likely to losetheir homes. Senior executives seemed aware of this racial mismatch, he recalled, and frantically tried to cover it up.”[2]· A study by N.Y.U.’s Furman Center for Real Estate and Urban Policy found that NY subprime lenders were most active in communities of color. These lenders had much lower rates in White communities even with similar median incomes.[3]· Communities of color have historically been denied good loans. The government’s Home Owners Loan Corporation mapsoutlined Black urban neighborhoods to show where banks should not lend. After this practice became illegal by the1968 Fair Housing Act, the discriminatory practice (“redlining”) continued less formally.[4][1] Furman Center for Real Estate and Urban Policy (2009).“The High Cost of Segregation: Exploring the relationship between racial segregation and Subprime Lending.”[2] Kristof, Nicholas (November 30, 2011). “A Banker Speaks, With Regret.” The New York Times.Available at: http://www.nytimes.com/2011/12/01/opinion/kristof-a-banker-speaks-with-regret.html?_r=4[3] Furman Center for Real Estate and Urban Policy (2009).“The High Cost of Segregation: Exploring the relationship between racial segregation and Subprime Lending.”[4] Hunt, Bradford. “Redlining.” The Encyclopedia of Chicago.Available at: http://encyclopedia.chicagohistory.org/pages/1050.html

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